Liverpool are expected to complete the deal for the player before the end of the week.
The reds are expected to pay around £8 million up front in a deal worth a potential £12 million dependant on appearances and bonuses.
The 20 year old plays on the left wing and places pressure on Harry Kewell. With Gabriel Heinze still one of Rafa’s targets – suggestions in the media are that Newcastle will attempt a move for John Arne Riise.
Babel has moved through the ranks at Ajax to the first team and has scored 14 times in 73 appearances for the first team.
Only last month the player took part in the Under-21 European Championships and was man of the match in the final – a game in which Holland beat Serbia 4-1, Babel scoring twice.